China Resources Microelectronics (688396) H2 2024 earnings summary

Executive summary

• Revenue increased 2.20% year-over-year to RMB 10.12 billion, while net profit attributable to shareholders fell 47.55% to RMB 776 million.

• Operating profit and total profit both declined by over 51% compared to the same period last year.

• Downstream demand showed some recovery, but intense price competition and ongoing industry destocking impacted profitability.

Financial highlights

• Operating income: RMB 9.90 billion, up 2.20% year-over-year.

• Net profit attributable to shareholders: RMB 776 million, down 47.55% year-over-year.

• Basic EPS: RMB 0.5866, down 47.65% year-over-year.

• Weighted average ROE: 3.53%, down 3.62 percentage points year-over-year.

• Total assets at period end: RMB 29.13 billion, down 0.31% from the start of the year.

Outlook and guidance

• Major projects, including packaging base and 12-inch production lines in Chongqing and Shenzhen, are in ramp-up or construction phases, impacting short-term profitability.

• Continued R&D investment and heavy asset investments are expected to exert pressure on profit metrics in the near term.